How Does Privatization Help Stimulate Gains in Economic Efficiency

question 37

Multiple Choice

How does privatization help stimulate gains in economic efficiency?

• A)By providing subsidies to newly privatized firms to shield them from outside competition and by raising barriers to FDI.
• B)By giving new private owners the reward of profits for searching for increases in productivity,entering new markets,and exiting losing ones.
• C)By allowing newly privatized firms monopoly over a particular industry.
• D)By encouraging the practice of state-controlled price regulation.

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Definitions:

Electronically Communicate

The process of exchanging information and conducting transactions through electronic means, such as email, instant messaging, and electronic data interchange (EDI).

MRP System

Material Requirements Planning System, a computer-based system used for planning and scheduling production and inventory control.

Bill of Materials

A comprehensive list detailing all materials, components, and assemblies required to build or manufacture a finished product.